Hybrids

The Australian Prudential Regulation Authority has put bank hybrid securities on notice with the release of a discussion paper proposing changes to the capital framework requirements for banks. APRA is proposing that banks phase out the use of AT1 capital instruments (often called hybrid bonds, or capital notes) and replace...

ASX-listed mall operator Scentre Group is set to raise about $750 million in a hybrid investment deal. According to the Australian Financial Review investors said they expected Scentre to pay a margin of 2.5 percentage points over the bank bill rate, or about 6.85 per cent based on current settings. In...

National Australia Bank has today launched an Additional Tier 1 Capital security, NAB Capital Notes 8. NAB said in an ASX statement that it was expecting to raise $750 million. The offer comprises both a Broker Firm Offer to eligible investors and an Institutional Offer. As a result of the Design...

Suncorp Group has announced the launch of an offer of Capital Notes 5 to raise approximately $300 million and at the same time revealed it had filed warning notices with the Australian Prudential Regulation Authority over stress-testing requirements. Capital Notes 5 are being issued as part of Suncorp's ongoing funding...

Insurance Australia Group this week announced the offer of Capital Notes 3, seeking to raise A$300 million. The offer is part of IAG's capital management strategy and the proceeds will be used for general corporate purposes. IAG Capital Notes 3 are perpetual, convertible, subordinated unsecured notes, issued by IAG. On Wednesday,...

The ANZ Bank has allocated $1.7 billion of ANZ Capital Notes 9, where it had been seeking around $1 billion originally under its offer. The Bank has issued a replacement prospectus today. It also announced that it had set the margin at 2.90% per annum. This is at the lower...

ANZ Bank has today launched its Additional Tier 1 capital security offer, ANZ Capital Notes 9, seeking to raise around $1 billion. At the same time, ANZ also announced that it will redeem ANZ Capital Notes 4 on 20 March 2024. Eligible Capital Notes 4 holders may apply to reinvest...

Bank hybrid issuing is set to ramp up early in 2024 with ANZ Bank expected to be the first to market. ANZ issued a recent statement saying it is expected to announce a new ANZ Capital Notes offer in February. It said it may include a limited reinvestment offer for...

Westpac has announced its completed bookbuild for its Westpac Capital Notes 10 offer has raised $1.75 billion. The margin was set at 3.10% per annum which was at the lower end of the marketing range of 310 basis points to 330 basis points it gave on announcing the offer. Strong demand...

Westpac has today announced to the market the launch of its hybrid Capital Notes AT1 offer where it is seeking to raise around $750 million in additional tier-one capital. The bank said its offer includes a reinvestment offer for eligible Westpac Capital Notes 6 holders. Westpac said the margin will be...